Local Government Competition On The Coordinated Development Of Regional Economy Impact Study

In the new era,China still faces the problem of uneven economic development.Local government competition is a key role in promoting regional economic growth,however,as the degree of competition increases,regional transaction costs increase,regional economic development disparities arise,and the impact of local government competition on coordinated regional economic development shifts from positive to negative,there is an upside-down U-shaped relationship between the two.Local governments carry out competition for scarce resources,provinces gradually clarify their comparative economic advantages,and regional economic industrial division gradually deepen.The realization of industrial division among are also important engines for promoting coordinated regional economic development.This paper examines the impact on coordinated regional economic development from the perspective of government and industry.and include industrial division as a mediating variable in the research framework to fully and rationally explain the connotation of the three.This paper explores the relationship between local government competition,industrial division of labor and coordinated regional economic development in 31 provinces during 2007-2020,and conducts an empirical analysis by establishing a quadratic function model.The effect of local government competition on regional economic coordination development is positive at the beginning,and after the threshold is reached,the effect changes from being negative to positive.Through the heterogeneity test,it is found that there is still upside-down U-shaped relationship between fiscal expenditure competition and regional economic coordinated development in local government competition in 2007-2011,while this relationship is not significant for tax competition,indicating that the effect of tax competition on regional economic coordinated development in this period is mainly promotion,while both instruments of local government competition in 2012-2020 show a significant upside-down U-shaped relationship with regional economic coordinated development.The results of the empirical analysis show that the industrial division exerts a significant mediating effect in the process,whether in the promotion or suppression stage,and promotes the improvement of regional economic coordination.Based on the above argumentation and analysis,how to push forward coordinated development of regional economy through local government competition and industrial division is the focus of this paper,and based on the above explanation,relevant suggestions are offered.